TIDMTTA
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) has signed an agreement
with Engie to acquire its portfolio of upstream liquefied natural
gas (LNG) assets for an overall enterprise value of $1.49 billion.
This portfolio includes participating interests in liquefaction
plants, notably the interest in the Cameron LNG project in the US,
long term LNG sales and purchase agreements, an LNG tanker fleet as
well as access to regasification capacities in Europe. Additional
payments of up to $ 550 million could be payable by Total in case
of an improvement in the oil markets in the coming years.
"The acquisition of Engie's upstream LNG business enables Total
to accelerate the implementation of its strategy to integrate along
the full gas value chain, in an LNG market growing strongly at 5%
to 6% per year. The combination of these two complementary
portfolios will allow the Group to manage an overall volume of
around 40 million tonnes of LNG per year by 2020, making Total the
second largest global player among the majors with a worldwide
market share of 10%," commented Patrick Pouyanné, Chairman &
Chief Executive Officer of Total. "With the equity stake in the
Cameron LNG project, Total will also become an integrated player in
the US LNG market, where the Group is already a gas producer."
The proposed transaction is subject to the applicable legally
required consultation and notification processes with employee
representatives as well as approvals by the relevant regulatory
authorities and partners on certain contracts. The transaction is
expected to close by mid 2018 and will have an effective date of
1st January 2018.
Following the transaction, Total will take over the teams in
charge of the LNG activities at Engie, which represents around 180
employees.
In addition, in parallel with this transaction, Total and Engie
agreed to cooperate to promote the use of biogas and renewable
hydrogen, with Engie becoming Total's priority supplier in this
field.
This transaction will bring to Total
-- 2.5 MTPA of liquefaction capacity to reinforce Total's existing
portfolio, bringing it to 23 MTPA by 2020, with :
16.6% equity stake in the Cameron LNG liquefaction plant with
3
trains currently under construction in Louisiana and the
potential
to expand by adding two further trains.
5% equity stake in the first train of the Idku LNG project
in
Egypt.
-- A portfolio of long-term LNG purchase and sale contracts, enabling the
Group in increase its overall portfolio to 28 MTPA by 2020, with
a
diversified supply from Algeria, Nigeria, Norway, Russia, Qatar
and
the USA, and outlets balanced between Europe and Asia.
-- The access to regasification capacities of 14 MTPA in Europe, which,
combined with the existing 4 MTPA of Total, allows the Group
to
balance its consolidated purchase and sales portfolio.
-- A fleet of 10 LNG tankers which will be consolidated with the 3 LNG
carriers of Total.
Overall, combining its interests in liquefaction plants and its
portfolio of third party supply contracts, the Group will manage a
global volume of nearly 40 MTPA.
About Total
Total is a global integrated energy producer and provider, a
leading international oil and gas company, a major player in
low-carbon energies. Our 98,000 employees are committed to better
energy that is safer, cleaner, more efficient, more innovative and
accessible to as many people as possible. As a responsible
corporate citizen, we focus on ensuring that our operations in more
than 130 countries worldwide consistently deliver economic, social
and environmental benefits.
* * * * *
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms "Total" and "Total Group"
are sometimes used for convenience where general references are
made to TOTAL S.A. and/or its subsidiaries. Likewise, the words
"we", "us" and "our" may also be used to refer to subsidiaries in
general or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
TotalMedia Relations: +33 1 47 44 46 99presse@total.com l
@TotalPressorInvestor Relations: +44 (0)207 719
7962ir@total.com
Classification: 3.1. Additional regulated information required
to be disclosed under the laws of a Member State
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(END) Dow Jones Newswires
November 08, 2017 12:28 ET (17:28 GMT)
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